Hong Kong to help finance Northern Metropolis project with land exchange scheme, but conservation plans may change

Owners can keep land earmarked for new town and build according to zoning uses, but they will be required to pay premium, development chief Bernadette Linn says

Minister also stresses former plan for protecting wetlands in area and establishing conservation parks contained only preliminary figures for sizes and may change

Reading Time:3 minutes

A view of the border area where the Northern Metropolis will take shape. Photo: Winson Wong

Published: 7:12pm, 30 Oct 2023Updated: 12:50am, 31 Oct 2023

The government will help finance the development of the Northern Metropolis mega project along Hong Kong’s border with mainland China by using a land exchange arrangement in a bid to ease the pressure on taxpayers, a minister has revealed.

Secretary for Development Bernadette Linn Hon-ho on Monday also stressed that an earlier plan for protecting wetlands and establishing parks in the area could change, saying the figures previously given were not “promises”.

Under the financing scheme, authorities would allow the current owners of land earmarked for the new town to keep their plots and build according to zoning uses, but they would be required to pay a premium to authorities, Linn said. Otherwise, they would be offered compensation, she added.

“If more land owners can participate and act in accordance with the government’s plan, it can alleviate the government’s capital burden as we do not need to pay the compensation, while the owners will conduct site formation works,” Linn said.

A view of Fanling. In its first phase, the financing scheme was only applicable to the Kwu Tung North and Fanling North New Development Area. Photo: Development Bureau

The minister was elaborating on financing options for the city’s mega infrastructure projects that Chief Executive John Lee Ka-chiu mentioned in his policy address last week. The government will set up a new office overseen by Financial Secretary Paul Chan Mo-po to examine all possible funding options for them.